ANNnews – Editorial Office – Transformation
12 January 2024
In the current economic climate, Procurement strategies are changing.
Given the current forecasts of our customers, we must be prepared to grow and be as competitive as possible, as well as have an adequate strategy that allows us to have contingency plans for any eventuality that may arise.
Aernnova has taken all this into account and is implementing measures to stabilize the availability of material in a sustainable way and to guarantee the capacity to supply our customers in time, quality and cost.
Therefore, one of the decisions taken has been to separate the Supply Chain & Logistics activity, whose head is José I. Ceballos, from Procurement (direct and indirect), whose head is María Goretti Sampayo. For this reason, a reorganization process has been initiated and in this article we will focus on the new Procurement area of the Aernnova Group. For this purpose we have attended the Workshop that Goretti Sampayo, Head of Procurement of Aernnova Group, has organized for her team and that we want to share with the Aernnova staff. A workshop in which the whole team actively participated to define the Procurement Action Plan. Additionally, Ricardo Chocarro and Iñigo Giménez Sainz de la Maza wanted to reinforce the strategic role of the Procurement team not only in cost improvement, but also in very relevant projects for ANN such as Zero Latency and ANN25.
Goretti Sampayo:
“The integration of a Procurement strategy within the company’s procedures is essential to guarantee good results in customer relations by supplying on time and on cost. This is especially relevant in view of Aernnova’s growth challenge.”
Implementing the Procurement strategy implies carrying out the activities of identification, evaluation, selection and contracting of suppliers to be able to fulfill all the activities that are developed within the organization. Not only the right number of suppliers in a company, but also the geographical positioning of our supplier network.
At Aernnova, in order to increase the resilience and flexibility of the supply chain, a strategy has been developed for each commodity. A structure with flexibility and independence.
Each commodity has been assigned a responsible person, and in parallel, a consistent structure has been designed in the Supply Chain / Procurement area that will guarantee end-to-end responsibility between suppliers and ANN.
WHAT ARE THE LINES OF THE PLAN
Optimization of total cost, in short, better profitability for Aernnova. By total cost we mean not only price, but also delivery and quality compliance, and the ability to grow in a sustainable manner.
Expand margins: aligned with Programs and Operations, develop the best purchasing strategy to achieve growth not only in volume but also in margins, for which the following 2 areas will be reinforced:
1.- Cost Engineering: define the costs of the components that Aernnova purchases from the offer phase, in close collaboration with Programs and Industrial, involving suppliers in the commitment to achieve the target costs.
2.- Supplier Development: Share information with suppliers from early stages of the industrialization of products, so that the relationship is strengthened and the risks of industrialization of new products / technologies are reduced. Also, they should participate in the development of new products, providing information on raw materials and contingency plans.
WHAT WE WANT TO ACHIEVE
A purchasing strategy aligned with Aernnova’s growth strategy, optimizing the total cost.
Definition and implementation of the Buy raw materials and components purchasing strategy, aligned with suppliers.
Cost targets aligned with suppliers from the beginning to the end of the project / program.
Cost targets must be supported by cost engineering.
Transparent cost and capability data from suppliers to define ANN growth strategies, optimizing the use of in-house capabilities complemented by external ones.
SUSTAINABLE AND RESPONSIBLE BEHAVIOR
Another fundamental consideration for the supply chain is compliance with current and future legal regulations. Environmental protection, human rights, protection of the health and safety of the workforce and fair working conditions have always been firmly anchored in Aernnova’s DNA.
We take responsibility for our impact on the environment and society, the sustainable and responsible business conduct of the supply chain and that our corporate social responsibility strategy is transmitted throughout the supply chain.
Aernnova’s suppliers must adhere to our Code of Ethics and undertake to observe all the values, laws and requirements indicated in this regard, environmental, social and governance.
The deep digitalization that is being carried out in our processes will be fundamental to achieve a competitive and future-proof supply chain, with consistent and real-time monitoring.
Great challenges lie ahead and Aernnova will continue to assume its pioneering role in facing them.
